MARKET COMMENTARY
As this week’s trading session commences, natural rubber is trading on a weak note. The trend setting TOCOM exchange stayed closed on account of Labour Thanksgiving day, while SHFE rubber futures extended losses. Amidst lingering worries over China, decline in crude oil and other industrial commodities may have probably weighed on the sentiments.
In the Indian market, natural rubber stayed on the bear turf last week, hitting a fresh six year low. RSS4 in the physical market slipped to Rs.108.50 a kg in lackluster trades last day. Low demand and bearishness in the overseas market weighed heavily on prices despite fall in production.
MARKET NEWS
According to the Association of Natural Rubber Producing Countires, natural rubber output among its member countries could fall for the second consecutive year in 2015 as farmers curtail tapping in this peak production period owing to low prices.
Rubber inventories in the warehoused monitored by SHFE rose 0.9 per cent to 230759 tonnes according to weekly data from the exchange.
India government imposed anti-dumping duty on import of certain grades of carbon black from China and Russia for a period of five years.
Indonesia, Malaysia, Thailand and Vietnam have agreed to harmonise their rubber standards with effect from Jan 1 according to Rusdan Dalimunthe, executive director at the Indonesia Rubber Association or GAPKINDO.
Crude rubber inventories at Japanese ports stood at 11,070 tonnes as of Oct. 31, down 3.6 percent from the last inventory date, data from the Rubber Trade Association of Japan showed
India’s natural rubber output in October declined 10.9 per cent on YoY basis to 49000 tonnes according to the Rubber Board. Imports declined as well by 11.6 per cent to 37691 tonnes while consumption increased 4.9 per cent during the same period.
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Geofin Comtrade
